PRESIDENT Bola Tinubu has directed the rollout of an additional 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria, doubling the government’s planned network to 1,000 stations in a major push to cut transportation costs following the removal of the petrol subsidy.
The President issued the directive on Thursday after a meeting with state governors, who he said had agreed to take immediate measures to reduce transport fares in their respective states by leveraging cheaper energy sources, including CNG and electric vehicles.
In a statement posted on his X handle on Thursday night, Tinubu said the additional stations would bring the Federal Government’s planned CNG refuelling network to 1,000 stations nationwide.
“The immediate objective is to ensure that Nigerians begin to benefit directly from the lower operating costs associated with CNG-powered vehicles,” he said, noting that vehicles running on CNG spend between 60 and 80 per cent less on fuel than those powered by petrol.
The President said the Federal Government and governors had agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares!” Tinubu declared.
He emphasised that “intra-state transportation” was where Nigerians experienced the impact of high transport costs most directly, adding that state governments were therefore central to delivering relief to commuters.
The President revealed that more than 120,000 vehicles had so far been converted to CNG nationwide, with more than 100,000 additional conversion kits currently in the pipeline. The government is also expanding vehicle conversion centres and CNG refuelling infrastructure across the country.
Through the Midstream and Downstream Gas Infrastructure Fund, more than 100 gas projects are currently being financed nationwide, including 15 CNG mother stations and 86 daughter stations. Tinubu noted that he had commissioned four of the projects in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos and a CNG facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.
The latest expansion is part of the Tinubu administration’s response to the economic effects of the subsidy removal, which the President announced during his inauguration on 29 May 2023 with the declaration that “fuel subsidy is gone”. The decision triggered a sharp increase in petrol prices and contributed to higher transportation costs, with knock-on effects on food prices and the wider cost of living.
The economic impact has become a major political issue ahead of the 2027 general election. Finance Minister Taiwo Oyedele recently said the subsidy reform generated an estimated ₦15.8 trillion in resources for the federation between June 2023 and December 2025.
Former Vice-President Atiku Abubakar has meanwhile pledged to restore a targeted petrol subsidy if elected president in 2027, maintaining that the removal has worsened hardship for Nigerians.
For the Tinubu administration, however, the expansion of CNG infrastructure is being positioned as a key part of its strategy to reduce energy and transportation costs.
“We must continue to work together to ensure that the benefits of cheaper energy reach Nigerians,” the President said. “Each tier of government must keep doing its part and work together for the benefit of every Nigerian.”
